Gold Price sees a negative start to the week. The yellow metal sees more downside, in the view of strategists at TD Securities. 

Cascading liquidations from various speculative groups

“We see evidence that the steepest outflows from broad commodity funds since the COVID-19 crisis may be catalyzing a series of cascading liquidations from various speculative groups. This is particularly concerning for gold prices given the extremely bloated length remaining in gold markets from proprietary traders.” 

“The substantial size accumulated from proprietary traders during the pandemic appears complacent in the face of a steadfastly hawkish Fed. In a liquidation vacuum, these positions are now vulnerable, which suggests the yellow metal remains prone to further downside still.”